38
Title
Introduction of Ordinance Authorizing the City Manager to Execute a Fifth Amendment to the License with Amber Kinetics, Inc., a Manufacturer of Energy Storage Technologies, to Extend the License Term for Twelve Months and to Establish a New Monthly Rent for the Unimproved Lot Located at 641 West Red Line Avenue for Electrical Systems Storage.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities). (Base Reuse and Economic Development 29061822)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The requested action would (i) authorize execution of a Fifth Amendment to the license dated April 1, 2014 (License), with Amber Kinetics, Inc. (Amber Kinetics), a manufacturer of energy storage technologies, to extend the license term for twelve (12) months, and (ii) establish monthly rent during the extended term of $4,389 for the unimproved lot located at 641 West Red Line Avenue, consisting of approximately 10,000 square feet of rentable land at Alameda Point (Premises) as shown on Exhibit 1. The unimproved lot would be used for electrical systems storage.
BACKGROUND
Amber Kinetics is a manufacturer of energy storage technologies with a mission to accelerate the world towards safer, more cost-effective, and environmentally sustainable solutions for storing energy. In 2014, the City of Alameda (City) and Amber Kinetics entered into the License (Exhibit 2) for use of the unimproved lot located at 641 West Red Line Avenue for electrical systems storage, including two below-ground precast vaults and a surface shed to house electrical and communications equipment. The License has been extended four times and terminated May 4, 2023 and the most recent monthly License fee was $4,180.
DISCUSSION
This Fifth Amendment to the License (Exhibit 7) retroactively extends the term of the License applicable to the premises for an additional twelve (12) months with a termination date of May 3, 2024, and also increases the License fee by 5% to $4,389 per month.
The Fifth Amendment provides both the City and Amber Kinetics the right to terminate the License at any time upon ninety (90) days’ prior written notice. There are currently no other anticipated uses for this unimproved lot.
ALTERNATIVES
• Approve the Fifth Amendment with Amber Kinetics, as described above, for the unimproved lot located at 641 West Red Line Avenue at Alameda Point.
• Do not approve the Fifth Amendment with Amber Kinetics as described above.
• Direct staff to renegotiate all or some of the terms of the Fifth Amendment based on City Council direction.
• Direct staff to seek and market the property to other prospective tenants.
FINANCIAL IMPACT
The revenue from the License will be deposited into the Base Reuse/Alameda Point Fund (Fund 290) lease revenue account and is limited to uses permitted under the Economic Development Conveyance Memorandum of Agreement with the United States Navy.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Introduce an ordinance authorizing the City Manager to execute a Fifth Amendment to the License with Amber Kinetics, Inc., a manufacturer of energy storage technologies, to extend the License term for twelve months and to establish a new monthly rent for the unimproved lot located at 641 West Red Line Avenue for electrical systems storage.
Respectfully submitted,
Andrew Thomas, Interim Base Reuse and Economic Development Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. License Area
2. License
3. First Amendment
4. Second Amendment
5. Third Amendment
6. Fourth Amendment
7. Fifth Amendment